Ifo Business Survey for August 2009

The Ifo Business Climate for industry and trade in Germany improved once again in August. For the second time in succession the firms have assessed their current business situation clearly less negatively. However, in comparison to conditions one year ago, the situation of the firms is still considerably worse at the moment. With regard to business developments in the coming half year, the survey participants are less sceptical than in July. The German economy is slowly recovering from its recent plunge. Nevertheless, risks for a relapse still remain. The Ifo Employment Barometer for German industry and trade rose somewhat in August. Pressure on the personnel stock has eased. Nevertheless, the firms' personnel plans are still geared towards staff reduction.